Bank raises UK interest rate to 4% but says inflation easing – follow reaction live – BBC News BreakingBreaking newsClose breaking news SummaryThe Bank of England raises its base rate from 3.5% to 4% – the highest in 14 yearsA higher interest rate will be welcomed by savers, but have a knock-on effect for those with mortgages, credit card debt and bank loans The 4% rise means people with a typical tracker mortgage will pay about £49 more a month – while those on a variable mortgage will pay another £31 a monthHowever, Governor Andrew Bailey says there are signs the UK has “turned the corner” on inflationThe Bank says the UK is still set to enter recession this year, but this will be shorter than previously thoughtThe slump is now expected to last just over a year rather than almost two as energy bills fall and price rises slowAs a result unemployment may not rise as much as previously thought with firms expected to make fewer redundanciesLive ReportingRelated Stories